[1]The IRS is adding new actions to help process valid Employee Retention Credit claims [2] amid misleading marketing that led to an exceptionally high rate of improper ERC claims.
The IRS says it did not have the resources to process the number of claims it received in 2023, an especially high amount including claims received after dubious firms used misleading marketing and encouraged wrongful claim submittals. Approximately 28,000 disallowance letters have been issued regarding these claims; the IRS estimates that 90% of these are validly issued.
Nearly 50,000 of the claims received before 9/14/23 were identified as “low risk” and are likely to be paid by the fall. After the agency processes these claims, it will begin processing valid claims that were filed between 9/14/23 and 1/31/24.
Applicants who have not received any correspondence from the IRS, submitted their Form 941x before the 9/14/23 moratorium, and are still waiting on their ERC refund likely have been categorized into the low-risk category and should be receiving their refund soon.
If you are still waiting for your ERC refund, you can contact the IRS to ensure that there have not been any letters questioning the validity of the claim, or simply wait to receive your refund in the next few months. If you have more specific questions, please contact a ShindelRock tax professional [3].